The Federation of Small Businesses (FSB) and the Fair Pint Campaign have launched a national drive to help the UK's pub insurance holders.

Under the campaign, the organisations are pushing for the government to refer the tie between pub insurance customers and the companies that own them to independent body the Competition Commission.

According to the FSB, the tie between them means that pub insurance holders are forced to pay rent and buy beer and other products, often at higher prices, from the firm which owns them.

Clive Davenport, FSB trade and industry chairman, commented: "With 40 pubs closing every week, it's time the government took urgent action to stop the trend."

Additionally, Steve Corbett, a tied tenant and founder member of the Fair Pint Campaign, said that the Business and Enterprise Select Committee was critical of the ties in a recent report.

He also claimed that pub insurance holders are struggling to earn the national minimum wage because of high beer and rent costs.

Recently, the British Beer & Pub Association revealed that total beer sales in the UK declined by 8.2 per cent in the first quarter of 2009.

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